Eagle Ford Gathering LLC, a joint venture between Kinder Morgan Energy
Partners, L.P. (NYSE: KMP) and Copano Energy, L.L.C. (Nasdaq: CPNO),
today announced the execution of a definitive long-term agreement to
provide significant natural gas gathering, transportation, processing
and fractionation services to Anadarko E&P Company LP in the Eagle Ford
Shale resource play.
"We look forward to working with Anadarko and are pleased to add them to
a growing list of producers who have chosen to use Eagle Ford
Gathering's midstream services," said R. Bruce Northcutt, Copano
Energy's president and chief executive officer. "Eagle Ford Gathering's
agreement with Anadarko represents a significant step toward full
utilization of the joint venture's newly expanded capacity."
Duane Kokinda, president of Kinder Morgan's Texas Intrastate Pipeline
Group, said, "We are pleased that Anadarko, one of the largest producers
in the Eagle Ford Shale play, has signed on for a significant portion of
Eagle Ford Gathering's expanded capacity. We are continuing discussions
with other producers and we are optimistic that we will fully subscribe
the expanded project capacity in the near future."
Eagle Ford Gathering's previously announced 30-inch pipeline in the
western Eagle Ford Shale play is under construction and is expected to
begin service in the third quarter of 2011. After fully subscribing its
initial capacity of 375,000 MMBtu per day, the joint venture recently
announced plans to construct 74 miles of additional pipelines that will
enable it to deliver natural gas to Formosa Hydrocarbons Company for
processing. The additional pipelines, which are expected to be completed
by year end, will enable the joint venture to more fully utilize the 600
MMcf per day capacity of its 30-inch pipeline.
About Kinder Morgan Energy Partners, L.P.
Kinder Morgan Energy Partners, L.P. is a leading pipeline transportation
and energy storage company in North America. KMP owns an interest in or
operates approximately 28,000 miles of pipelines and 180 terminals. Its
pipelines transport natural gas, gasoline, crude oil, CO2 and other
products, and its terminals store petroleum products and chemicals and
handle bulk materials like coal and petroleum coke. KMP is also the
leading provider of CO2 for enhanced oil recovery projects in North
America. One of the largest publicly traded pipeline limited
partnerships in America, KMP has an enterprise value of over $30
billion. The general partner of KMP is owned by Kinder Morgan, Inc., a
private company. For more information please visit www.kindermorgan.com.
About Copano Energy, L.L.C.
Houston-based Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream
natural gas company with operations in Oklahoma, Texas, Wyoming and
Louisiana. Its assets include approximately 6,400 miles of active
natural gas gathering and transmission pipelines, 250 miles of NGL
pipelines and eight natural gas processing plants, with over one Bcf per
day of combined processing capacity and 22,000 barrels per day of
fractionation capacity. For more information please visit www.copanoenergy.com.
Forward-Looking Statements
This news release includes forward-looking statements. Although Kinder
Morgan and Copano Energy believe that their expectations are based on
reasonable assumptions, they can give no assurance that such assumptions
will materialize or that the proposed transactions will be consummated.
Important factors that could cause actual results to differ materially
from those in the forward-looking statements in this release include:
the impact of inflation on project costs and the availability of
required resources; the effects on the project schedule, project costs,
or both, of numerous regulatory, environmental, political, legal and
operational uncertainties; the impact on volumes and resulting cash flow
of technological, economic and other uncertainties inherent in
estimating future production and producers' ability to drill and
successfully complete and attach new natural gas supplies, and the
availability of downstream transportation systems and other facilities
for natural gas and NGLs. These and other risks and uncertainties are
described in the risk factors sections of Kinder Morgan's and Copano
Energy's Forms 10-K and 10-Q as filed with the Securities and Exchange
Commission.
